Historical Background of the

Construction Industry
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Before looking into the historical background of the construction industry, it is

necessary to look at what exactly constitutes the construction industry. In trying to
define the construction industry, it may not be easy to come up with a universal
definition. This is because of the fact that the definitions bestowed to the phrase in
different societies tend to contain different aspects pertinent to that society. Of the
definitions given, the definition given to the phrase by Australian Bureau of Statistics
to its construction industry survey seems appropriate and widely applicable.
Accordingly, the construction industry is described as including:
"all units mainly engaged in constructing buildings (including the on-site
assembly and erection of prefabricated buildings), roads, railroads,
aerodromes, irrigation projects, harbor or river works, gas, sewerage or
storm water drains or mains, electricity or other transmission lines or
towers, pipelines, oil refineries or other specified civil engineering projects.
In general, units mainly engaged in the repair of buildings or other
structures are also included.... as are those engaged in the alteration or
renovation of buildings, preparation of mine sites, demolition or excavation.
Construction has been an aspect of life since the beginning of human existence. The
first buildings were huts and shelters constructed by hand or with simple tools. As
cities grew during the Bronze Age, a class of professional craftsmen like bricklayers
and carpenters appeared. Occasionally, slaves were used for construction work. In the
19th century, steam-powered machinery appeared, and later on diesel and electric
powered vehicles such as cranes, excavators and bulldozers. Traditional construction,
might be considered as having properly, commenced between 4000 and 2000 BC in
Ancient Egypt and Mesopotamia when humans started to abandon a nomadic
existence, that caused a the construction of shelter. The construction of Pyramids in
Egypt (2700-2500 BC) might be considered the first instance of large structure
construction. Other ancient historic constructions include the Parthenon by Iktinos in
Ancient Greece (447-438 BC), the Apian Way by Roman engineers (312 BC), and the
Great Wall of China by General Ming T'ien under orders from Ch'in Emperor Shih
Huang Ti (c. 220 BC). Similarly, the Romans developed civil structures throughout
their empire including aqueducts, insulae, harbors, bridges, dams and roads.
Population growth and urbanization led to an increasing need for shelter
developments, and focused attention on the importance of local building materials and
techniques. Accordingly, the construction industry in many parts of the world started
to grow with an increasing demand.  In line with this, construction companies are growing at
a fast pace all over the world. With this growth of the construction industry and subsequent
growth of construction companies, contractual relationships related to construction are
increasing. Thus, there is a dire need for a coherent and efficient law to deal with such
contractual relationships.
Coming to our country, the growth and increasing demand for the construction
industry has followed a similar pattern as observed in the trend of the world.
Currently, construction is one of the sectors leading the way towards modernization
and industrialization in Ethiopia. The construction sector in Ethiopia, generally in the
world, contributes to the realization of about fifty percent of the total capital. Being
the second largest employer in the country, it’s also an engine for technology,
innovation and overall development.
In the past history of Ethiopia, the construction industry was not considered as an
independent sector of the national economy. It was rather considered as incapable of
generating national wealth. As a result, no comprehensive strategy for its development
was considered. This, in turn, has led to the undesirable features of the current
construction sector. These features include lack of clear developmental objectives for
the industry; inadequate co-ordination of planning between the industry and
infrastructure programs in the various sectors of the economy heavy dependence on
foreign resources such as materials, equipment and expertise representation of the role
players in the construction sector by inadequate and ineffective organizations
inadequate numbers of suitably qualified and experienced personnel at all levels that
include engineers, technicians, mechanics, operators and foremen, etc. inadequate
relevant local construction regulations and standards, and inadequate consideration
given to the use of local resources (including community participation in labor-based
works).
Ethiopia witnessed a decline in the performance of almost all sectors of the economy
during the various periods of government prior to 1991. The post-world war period in
Ethiopia registered significant changes from the time of Emperor Haile Selasie (1941-
1974) to that of the Derg (1974-1991) culminating in the events of 1991 which
resulted in the formation of the Transitional Government of Ethiopia (hereinafter
TGE). Even though various market based economic reforms have been introduced to
the various industries of the country, including the construction industry, since the
downfall of the Derg regime in 1992, the domestic construction industry has still
faced several hindering factors in its development.
In the New Economic Policy statement issued in 1992, the TGE made clear its
intention to transform the stagnant command economy inherited from its predecessors
into a functioning market-based economy. This transformation is sought to be
achieved through an Agricultural Development Led-Industrialization (hereinafter
ADLI) strategy for the country which is supported by similar strategies in education,
health and transport sectors. However, even if the country is well endowed with
natural resources with 60% of its total land area estimated to be potentially arable, its
road density is amongst the lowest in Africa nations and other developing countries.
Furthermore, the existing road network has deteriorated to the extent that only eleven
percent of paved roads and nineteen percent of gravel roads are in good condition,
making it the worst in comparison with other developing countries. It is evident from
the above that the success of the ADLI strategy and the consequent economic
recovery and development of the country is highly dependent on the restoration of the
country’s road infrastructure.
With the above considerations in mind, the construction industry is being given
special focus in the policies of the country. The construction industry is one of the
three sectors of the economy identified by the Ethiopia Government for special
consideration to foster the country’s economic development.  However, the general
state of the domestic construction industry in Ethiopia is still characterized by
inadequate capital base, old and limited numbers of equipment, low levels of
equipment availability and utilization, deficiencies in technical, managerial, financial
and entrepreneurial skills, limited experience and participation of the private sectors in
construction and consultation works, and insufficient and ineffective use of labor-
based road construction and maintenance technology.
The construction industry in Ethiopia is a sector that opens the door for the growth of
many additional industries. Building works require high input. For instance, they
require different metal products, clay works, and cement and cement products, etc. As
such, the growth of these industries will surely follow the growth of the construction
industry. Similarly, when the construction and renovation of housing increase, the
demand for household furniture increased; thereby, indirectly, opening the door for
the growth of the furniture industry. All in all, the construction industry is a sector that
can entertain big micro companies, that is widely labor based. All these being taken
into consideration, the industry policy of the Federal Democratic Republic of Ethiopia
has sought to pay special attention to the construction industry of the country.
Last modified on Wednesday, 02 May 2012 13:05
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Architecture of Ethiopia
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The ruin of the temple at Yeha, Tigray Region, Ethiopia.

The architecture of Ethiopia varies greatly from region to region. Over the years, it has
incorporated various architectural styles and techniques.

Contents

 1Dʿmt (c. 800-400 BC)

 2Aksumite architecture
 3Zagwe dynasty
 4Gondarine architecture
 5See also
 6Footnotes
 7External links

Dʿmt (c. 800-400 BC)[edit]

The best known building of the period in the region is the ruined 8th-century BC multi-
story tower at Yeha in Ethiopia, believed to have been the capital of Dʿmt. Ashlar
masonry was especially dominant during this period, owing to South Arabian influence
where the style was extremely common for monumental structures.
Aksumite architecture[edit]

Church of Abune Aregawi at the Debre Damo monastery, constructed around the mid-6th century.

Aksumite architecture flourished in the region from the 4th century BC onward. It
persisted even after the transition from the Aksumite dynasty to the Zagwe dynasty in
the 12th century, as attested by the numerous Aksumite influences in and around the
medieval churches of Lalibela. Stelae (hawilts) and later entire churches were carved
out of single blocks of rock. This was later emulated at Lalibela and throughout
the Tigray Province, especially during the early-mid medieval period (c. 10th and 11th
centuries in Tigray, mainly 12th century around Lalibela). Other monumental structures
include massive underground tombs, often located beneath stelae. Among the most
spectacular survivals are the giant stelae, one of which, now fallen (scholars think that it
may have fallen during or immediately after erection), is the single
largest monolithic structure ever erected (or attempted to be erected). Other well-known
structures employing the use of monoliths include tombs such as the "Tomb of the False
Door" and the tombs of Kaleb and Gebre Mesqel in Axum.
Most structures, however, like palaces, villas, commoner's houses, and other churches
and monasteries, were built of alternating layers of stone and wood. The protruding
wooden support beams in these structures have been named "monkey heads" and are
a staple of Aksumite architecture and a mark of Aksumite influence in later structures.
Some examples of this style had whitewashed exteriors and/or interiors, such as the
medieval 12th-century monastery of Yemrehanna Krestos near Lalibela, built during the
Zagwe dynasty in Aksumite style. Contemporary houses were one-room stone
structures, or two-storey square houses,
or roundhouses of sandstone with basalt foundations. Villas were generally two to four
storeys tall and built on sprawling rectangular plans (cf. Dungur ruins). A good example
of still-standing Aksumite architecture is the monastery of Debre Damo from the 6th
century.

Zagwe dynasty[edit]
Lalibela's monolithic church Bete Gebriel-Rufa'el.

Ethiopian architecture continued to expand from the Aksumite style, but also
incorporating new traditions with the expansion of the Ethiopian state. Styles
incorporated more wood and rounder structures in commoner's architecture in the
center of the country and the south, and these stylistic influencies were manifested in
the slow construction of churches and monasteries. Throughout the medieval period,
Aksumite architecture and influences and its monolithic tradition persisted, with its
influence strongest in the early medieval (Late Aksumite) and Zagwe periods (when the
churches of Lalibela were carved).

Biete Medhane Alem in Lalibela, the largest monolithic church in the world.

Throughout the medieval period, and especially from the 10th to 12th centuries,
churches were hewn out of rock throughout Ethiopia, especially during the northernmost
region of Tigray, which was the heart of the Aksumite Empire. However, rock-hewn
churches have been found as far south as Adadi Maryam (15th century), about 100 km
south of Addis Abeba. The most famous example of Ethiopian rock-hewn architecture
are the 11 monolithic churches of Lalibela, carved out of the red volcanic tuff found
around the town. Though later medieval hagiographies attribute all 11 structures to the
eponymous King Lalibela (the town was called Roha and Adefa before his reign), new
evidence indicates that they may have been built separately over a period of a few
centuries, with only a few of the more recent churches having been built under his reign.
Archaeologist and Ethiopisant David Phillipson postulates, for instance, that Bete
Gebriel-Rufa'el was actually built in the very early medieval period, some time between
600 and 800 A.D., originally as a fortress but was later turned into a church. [1]

Gondarine architecture[edit]

Fasilides' castle in Fasil Ghebbi, Gondar.

During the early modern period, the absorption of new diverse influences such as
Baroque, Arab, Turkish and Gujarati Indian style began with the arrival
of Portuguese Jesuit missionaries in the 16th and 17th centuries. Portuguese soldiers
had initially come in the mid-16th century as allies to aid Ethiopia in its fight against
Adal, and later Jesuits came hoping to convert the country. Some Turkish influence may
have entered the country during the late 16th century during its war with the Ottoman
Empire (see Habesh), which resulted in an increased building of fortresses and castles.
Ethiopia, naturally easily defensible because of its numerous ambas or flat-topped
mountains and rugged terrain, yielded little tactical use from the structures in contrast to
their advantages in the flat terrain of Europe and other areas, and so had until this point
little developed the tradition. Castles were built especially beginning with the reign
of Sarsa Dengel around the Lake Tana region, and subsequent Emperors maintained
the tradition, eventually resulting in the creation of the Fasil Ghebbi (royal enclosure of
castles) in the newly founded capital (1635), Gondar. Emperor Susenyos (r.1606-1632)
converted to Catholicism in 1622 and attempted to make it the state religion, declaring it
as such from 1624 until his abdication; during this time, he employed Arab, Gujarati
(brought by the Jesuits), and Jesuit masons and their styles, as well as local masons,
some of whom were Beta Israel. With the reign of his son Fasilides, most of these
foreigners were expelled, although some of their architectural styles were absorbed into
the prevailing Ethiopian architectural style. This style of the Gondarine dynasty would
persist throughout the 17th and 18th centuries especially and also influenced modern
19th-century and later styles.

Architecture of Ethiopia - Wikipedia

History of Road Building in Ethiopia in Brief

Historic chronicles of the 17th and 18th centuries show that there were a number of small roads trails
and foot paths, in addition to the traditional shoulder porterage, animals like mules, donkeys and horses
and camels were used as a means of transportation in Ethiopia. In the 18th century, especially during
the reign of Emperor Tewodros, although the technology was primitive it was believed that planned
road construction efforts were made. It is also believed that Emperor Yohannnes IV, who succeeded
Tewodros, was engaged in road building. However due to the danger of invasion by Egyptians, Derbush
and Turkish the Emperor was not able to achieve his desires. It was prior to the second Italian
occupation i.e. between the years 1896 and 1936 that a great success was made in road construction.
Emperor Menilik was said to be a successful road builder participating himself in the construction. In
1903 the road from Eritrea to Addis Ababa and the road from Addis to Addis Alem were built. In addition
it was during this time that the first Asphalt roads appeared in Addis. During the Italian occupation roads
were built by them and they were established to meet the requirements of the Military control rather
than to promote the overall development of the country’s economy. In addition, the roads lacked most
of the modern location, design and construction features desirable for present day high speed traffic.
The roads and trails built and improved during the 5 years Italian occupation were about
6000km.Approximately 2500 km of them were given a single asphalt surface treatment, drainage
structures were usually of stone masonry and at least three tunnels were built. However, when Ethiopia
regained its independence, the Italians in their fleeing attempt almost undid what they created by
blasting bridges and dynamiting roads. From the time the Italian packed off to home to the eventual
creation of the Imperial Highway Authority (1941 to 1951) road construction or maintenance activity
was almost subsided for a stagnation period of one decade because of lack of funds, equipment and
expertise. Organizational Background of ERA Following the eviction of the Italian occupiers, the Imperial
Ethiopian Government was convinced that a Road Agency solely responsible for rehabilitating/restoring
and expanding the road network throughout the country had to be established. Accordingly, the
Imperial Highway Authority (IHA) was established under proclamation No. 115/1951 as a semi-
autonomous agency with specific duties to plan, design, construct, and maintain roads. Responsibilities
for construction and maintenance of roads remained under a single autonomous authority (IHA) for 26
years (1951-1977). The Ministry of Transport and Communication turned out to be the supervising
authority of ERA. The Ethiopian Roads Authority has been reestablished under proclamation 133/1978
incorporating, among others, the Rural Roads Department in addition to the Highway Department. In
1980, the Military Government that took power in 1974 reformed the agency into the Ethiopian
Transport Construction Authority (ETCA) by proclamation No. 189/1980 and became answerable to the
newly formed Ministry of Construction. The proclamation enlarged responsibility of the Authority by
expanding its task to incorporate the construction of Airports, Seaports, Railways, and Municipal
Roads.Following the shift from a command-based economy to a market oriented one in 1991, ERA was
reestablished by proclamation No.63/1993 with a view to providing a strong administration under the
leadership of a Board. As part of its reform, the government assigned administration of rural roads to
the regional self-governments and main roads to ERA as part of the Federal Government’s responsibility.
ERA’s role regarding rural roads was then limited to rendering support such as overall network planning,
training and technical assistance as required by Regional Governments. To cope up with existing
situations, ERA was again re-established by proclamation No. 80/1997 with the objective to develop and
administer highways, and to ensure the standard of road construction. With the establishment of the
new cabinet of Ministers in October 2001, a Ministry of Infrastructure and later on Ministry of Works
and Urban Development has been formed with the responsibility of developing the infrastructure of the
nation. ERA, which is one of the organizations under the Ministry of Works and Urban Development and
accountable to the Board, is responsible for planning and formulating long and short term plans and
programs for road construction, design, maintenance of trunk and major link roads, as well as for
administration of contracts. Currently, the main responsibilities of ERA are network planning;
management of contract projects and force account operations. The long-term objective is to focus on
policy, planning and contract administration and to pull out gradually from direct operational works.
From its year of establishment 1951, the Organization managed to undertake various physical and policy
issue assignments. During its establishment the total road network amounted to 6,400 km, which was
mainly built during the Italian invasion. A programme development of road started in 1951 with
establishment of IHA. The programs were:- First highway program (1951-1957) The program involved a
total capital investment of birr 77 million and largely consisted of the reconstruction and maintenance
of 1525 km of badly damaged and 2686km of all weather roads. The road constructed during this time
include: - Addis –Assab (860km), Addis-Jimma (355km) and AddisNekempt (331km). Moreover, road
maintenance were carried out on Addis-Adigrat, Addis –Blue Nile and Addis-Shasemene trunk roads.
Second Highway Program (1957-1966) The program provided for the continued maintenance and
improvement of 4500km of main highways, for the construction of 800km of new roads and
improvement of 1000km of other existing roads. The amount disbursed in this program is 110 million
birr. Third Highway Program (1965-1968) The program involved a total outlay of Birr 60 million which
went into the construction of 700km of primary and secondary roads, 1000km of feeder roads and
1040km of asphalt surfacing works. Fourth Highway Program (1968-1973) During the Fourth Highway
Program 820 km of new, primary and secondary roads were constructed. IT is during this program that
four feasibility studies of future road works and technical assistance and advisory service in the
reorganization of the Authority started. The program also included expert assistance in the area of
engineering, operation and maintenance, overseas training with practical orientation for equipment
superintendents, foremen and mechanics and others. Out of the total program of the planned 2246km
roads 1600km were completed. Fifth Highway Program (1974-1976) In this program great emphasis was
given to the construction of feeder road network to support the agricultural development,
strengthening the institutional capability of the Road Agency and providing assistance to the local
contracting industry. The program covered the construction of 539km of feeder road and 322 km of
asphalt surfacing projects. It also involved the purchase of road maintenance projects worth Birr 14
million and further strengthening of the organization and developing the domestic construction
industry. Sixth Highway Program (1976-1978) During this time the rehabilitation 284 km of primary
roads, 280 km of secondary roads, construction of 809 km new gravel feeder road, 657km of service-to
traffic and 1660km of rural roads were executed. With regards to road construction and maintenance,
the authority for the first time in its history, turned into a sectoral approach in contrast to the former
project by project approach to read planning. To realize this two Road Sector Programs were carried
out .The first from 1979 to 1982 and the second from 1984 to1987. Unlike the previous programs, the
Fifth and the Sixth Highway Programs shifted emphasis to the construction of relatively lower standard
roads in conjunction with agricultural projects such as the Minimum package program, the coffee
processing projects and the Amibara Irrigation projects. During the Fifth and the Sixth High way
programs, the construction of the Butajira-Zway, AselaDodola, Agaro-Gera, Gelemso-Mechara, Dejen-
Mota,Sodo-Bulki,Nekempte-Bedele and Bonga-Mizan Teferi roads was carried out. The most important
features of the two programs was that local contractors managed to successfully participate in road
work contracts with the assistance of government and the International Development Association (IDA)
In ERA history, major high way construction works were dominated by international contractors
between 1960 and 1970. The major roads from Awash to Mille, Agaro to Bedele, and Dilla to Moyale and
Nekempte-Ghimbi were built by foreign contractors with the assistance from donors, specifically the
World Bank and KFW. Between 1972 and 1976, the domestic construction industry had started to
develop and became active to same extent in the road construction sector. Unfortunately, their
development was impeded by the adverse policy environment created by the Derg regime.In its history,
ever since mid 1975 ERA’s Force Account Construction capacity expanded and executed major projects
such as:-  The rehabilitation of the Addis-Awash-Mile road with World Bank and Government funding 
The Construction of feeder roads and service to traffic roads such as the Bonga-Mizan, Mizan-Gore-Tepi
and Gore-Gambella The Construction and rehabilitation of run-ways like Bahir-Dar, Diredawa, Debrezeit,
Assab and Bole Airports. The Imperial Highway Authority has been renamed three times and
substantially reformed seven times by law in its history. Although responsibilities for construction and
maintenance of roads remained under a single autonomous Authority (IHA) for 26 years (1951-1977),
destabilization of such responsibilities began when, in addition to the IHA, the ministry of Transport and
communication was assigned through cabinet reform of the military government in 1977 to construct,
improve and maintain or cause the construction, improvement and maintenance of roads. Then
followed the reform of IHA in 1978 under which the board was dissolved and the ministry of Transport
and Communication became the supervising authority of ERA. According to proclamation No 133/1978,
the reestablished Ethiopian Roads Authority included Rural Roads Department in addition to the
Highway Department and other Departments and divisions. The purpose was to reconstruct, rehabilitate
and maintain Rural Roads. In 1980, by proclamation No 189 of 1980, ERA was reformed into the
Ethiopian Transport Construction Authority (ITCA) with increased responsibility that included Airport,
Seaports, Railways and Municipal Roads With regard to road construction and maintenance, the
Authority for the first time in its history turned in 1977 to a sectoral approach in contrast to the former
project by project approach to read planning. It was in 1979 to 1982 and in the period of 1984 to 1987.
The First Road Sector Program (1979-1982) The program covered the construction of 2725km of rural
roads, 944km of service-to traffic roads and 1732 km of feeder roads, asphalt surfacing of 596 of gravel
roads, the asphalt overlays of 502 km of existing paved roads and the rehabilitation of 73 km of primary
and secondary roads. The Second Road Sector Program (1984-1987) The accomplishment of the
program was the asphalt overlay of 97km of paved roads, the asphalt surfacing of 118km of gravel roads
construction of 386km of feeder roads such as Nekempt-Bure,Gore-Tepi,Injibara-Beles,Holeta-
Muger,Mota-Bahirdar,Mizan-Tepi,Shishinda-tepi and the asphalt overlaying of the Addis-Awash-Mile
road was completed successfully, with greater use of force account construction. The program also
included 1626km of rural roads and 196km of service to traffic roads and the equipping of construction
brigades for airfields, seaports and city roads in addition to the development of manpower resource and
the maintenance of the road network. The second Road Sector Development Program was followed by
The Road Rehabilitation Project (RRP). The primary objective of the project was improving the bearing
capacity, geometry, safety and riding quality on sections between Mille and Assab, Addis-Assab road.
The RRP was also followed by the road component of the Emergency Recovery and Reconstruction
Programme (ERRP). In 1990, by the proclamation No 26, 1990, ETCA became ERA with responsibility only
for roads and formally accountable to the Ministry of Construction. The powers and duties of ERA
included contract Administration and supervision in addition to the maintenance of roads. In 1991,
Ethiopia embarked upon a comprehensive economic reform program putting in place the conditions
from a command based economy to a market oriented one. In 1993 ERA was also reestablished by
Proclamation No 63/1993 with the view to providing a strong administration under the leadership of the
Board. During this time as part of its reforms, the Transitional Government of Ethiopia assigned
administration of rural roads to the Regional self Governments and Highways to ERA as part of the
Central government’s responsibility. ERA’s role regarding regional rural roads became rendering
supports such as network planning, training and technical assistance when deemed necessary by
regional governments. To cope up with the existing situations ERA was again reestablished by
proclamation No 80/1997 with the objective to develop and administer highways, to ensure the
standard of road construction and to create proper conditions on which the road network is
coordinately promoted. According to the proclamation, ERA is legally autonomous agency responsible
for the management of the country’s roads. The proclamation further stipulates that trunk and major
link, which make up the federal road network system, are administered by the Ethiopian Roads
Authority. Ethiopian Roads Authority’s primary function is to maintain the existing road network through
the districts as its corporate responsibility. The maintenance of the entire main road network is carried
out by ten maintenance districts which are conveniently located at various regions throughout the
country.The proclamation also authorized ERA to administer weigh bridges and through them to control
overloaded vehicles which are one of the major causes for fast deterioration of roads. ERA is
administered by a Board and the Board of Directors will provide General Policy direction and have
primary oversight responsibility for project performance monitoring. Road Sector Development Program
(RSDP) Recognizing the importance of the road transport in supporting social and economic growth and
its role as a catalyst to meet poverty reduction targets, the Government of Ethiopia has placed increased
emphasis on improvement of the quality and extent of road infrastructure in the country. To address
constraints in the road sector, related to restricted road network coverage and poor condition, the
Government formulated the Road Sector Development Program in 1997. In 1997 the road network had
grown to 26,550 km, of which 3,708 km were paved. Then, as a result of investments made under the
three phases of RSDP during the last 13 years the total length of the network has increased to 49,000
km. According to the thirteen years RSDP performance assessment document, out of the total network
22,247 km. is federal while the remaining 26,753 km. is regional. The condition of the road network is
also improved. Currently, almost 55% of the total classified road network is in good condition, 26% are
registered as being in fair condition and the remaining 19% is considered to be poor. This when
compared to the condition in 1997, where 22% of the total network were in good condition, 26% fair
and 52% poor, is actually a significant improvement. The thirteen years of the RSDP has seen significant
improvements in the restoration and expansion of Ethiopia’s road network. Physical achievements have
been matched by significant improvements in the maintenance of the network, strengthening of the
management capacity of the road agencies and delivery on policy reform. A total of 140,349 km of
physical road works was carried out of which 18,188 km was on federal roads, 21,778 km was on
regional roads and 100,384 km was on Wereda (community) roads. Physical accomplishment against
plan was 118%. The overall disbursement over 13 years of RSDP was ETB 60.4 billion (USD 5962.6
million) and this disbursement was 100% of the plan. An assessment of contribution of finance to the
implementation of the RSDP shows that 70% came from internal sources (the Government, the Road
Fund and the Community). The remaining 30% has been pooled from the international community.
Specifically, the share of the Government of Ethiopia is the highest (53.8%), followed by Road Fund
(14.2%), the IDA (11.8%) and EU (8.6%). Some 2,295 km of rehabilitation and 3,029 km of upgrading of
trunk roads were achieved under the program. Upgrading and construction of link roads was completed
on 1939 km and 3143 km respectively. Heavy maintenance of road on 7,782 km of federal road was also
completed. As a result of the RSDP investment, the total road network in Ethiopia has increased on
average by about 4.2% each year. By June 2010 and the completion of the RSDP III, the total classified
road network had increased to 49,000 km (excluding community roads). This is an increase of some
22,450 km since the launch of the program in June 1997, giving a road density of 44.4 km per 1000 km2
and 0.58 km per 1000 population. The proportion of the road network in good condition has also
increased, from 22 per cent in 1997 to 56 percent in 2010. Improvements have been realized in the
quality of regional roads and rural accessibility has improved through the construction of new link roads
and rural roads, in addition to a significant number of new community roads. Moreover, beyond the
physical works different supportive policy issues such as improvement of the performance of the
organization’s work force, improvement of local contractors (ERA, from 1995 – 2007, has given training
to a total of 10,729 people from its own work force and stakeholders/collaborators), road safety
measures, axle load limits and decentralization of District Maintenance Organizations (DMOs) and
various other related activities have been undertaken and significant results were registered. Over the
last fourteen years the performance was improved but still there is a big gap for improvement. The issue
of addressing huge network expansion and improvement as well as backlogs of maintenance needs
under funding constraints, weak local construction industry, few international contractors, weak
capacity of own force and District Road Maintenance Contractors (DRMC) units with leaner qualified
staffing resources is indeed a great challenge for Ethiopian road sector. In addition slow pace of
institutional change, weak implementation capacity of the local construction industry, high turnover of
professional and managerial staffs, and lengthy contract procurement processes even for small
contracts under the rules and regulations set out in the public procurement and donor agencies
guidelines can be cited as major challenges.Better Roads for Better Ethiopia Road Network Development
in Ethiopia in K.m (1951 – 2010) Road Network Development (1951 – 1973) Year Asphalt Gravel Total
1951 34®® 3®®® 64®® 1963 35®® 41®® 76®® 1970 31®® 55®® 86®® 1973 336® 58®® 916® Road Network
Development (1974 – 1991) Year Asphalt Gravel (R.R) Total 1974 3360 59®® 9260 1979 3115 7328 1091
11534 1985 4042 8788 3808 16638 1991 4109 9298 5610 19017 Road Network (1992 - 2®1®) Year
Asphalt Gravel R.R URRAP Total *1984 1992 3542 8966 5573 - 18081 1989 1997 3708 12162 10680 -
26550 1992 2000 3824 12250 15480 - 31554 1994 2002 4053 12564 16680 - 33297 1999 2007 5452
14628 22349 - 42429 2000 2008 6066 14363 23930 - 44359 2001 2009 6938 14234 25640 - 46812 2002
2010 7290 14957 26753 - 49000 2003/2011 8295 14136 29611 854 52896 *Eritrea’s Road Network is
reducedAdditional 100,000 km of community or low-level rural are constructed Road Network
Development Year Increment in km. Average Growth in % Road Network Development 1951-1973 276®
2.1 926® 1974-1991 9757 6.2 19®17 1992-2009 28731 9.® 46812 2009-2010 31019 9.0 49000 2010-2011
35833 10.13 52896 Vision 2028 The vision of ERA is to “assure the provision of adequate, reliable, high
quality and standard road network to Ethiopians and open up all potential development areas which will
contribute to fast socio-economic development all over the country” and its mission Is to provide better
roads for better Ethiopia in as well as supporting the country’s vision of joining the middle level income
countries in two decades time. Changes in the Ethiopian road transport sector occur in response to and
in anticipation of change in the rest of the economy. The on-going Road Sector Development Program
since 1997 is recognized as an essential input to the Government’s effort in reviving the economy, ability
to integrate the county towards stronger nation, and most importantly, to the quality of life of all
Ethiopians. Today, our limited infrastructure has shown improvement compared to the situation in
1990s. But the sustained growth acquires some serious rethinking about the way we deliver services,
manage and maintain the roads system that the country needs. On the other hand, the Ethiopian Roads
Authority after 60 years must be lean and efficient organization prized for the challenges of the new
Ethiopian Millennium. Building on our history and profiting from our limited successes, we have to move
forward with a new and refined vision to better serve our customers. The mandates of ERA are made up
from the establishment proclamation of the Organization. The overall mandate of ERA is: to regulate,
plan and manage the federal road network, which includes construction, maintenance, upgrading and
rehabilitation so that it will achieve the overall objective of economic development, growth and poverty
reduction. The above overall Mandate of ERA emanates from the powers and duties vested upon it by
Proclamation No. 80/1997. Sectoral EnvironmentEthiopia has a vision of joining middle-income
countries by 2028. Hence, the country needs to increase its road network from 49,000 km (in 2010) to
201,750 km by 2028.For this vision to come true, a need for well-organized and strong local road
construction industry is inevitable. However, the Domestic Construction Industry (DCI) has not yet fully
developed to support the road construction needs of the country. Many of the local contractors are new
entrants to the industry and face several constraints such as shortage of capital, equipment and human
resources. The low price offered for construction is also one of the reasons for unsatisfactory
performance of the contractors. Moreover, Rural Roads Agencies (RRAs) and DMOs have limited
capacity both from the human element and technical perspectives to play a big role in the process of
improving the sector. To encourage entrance of local contractors into the sector, the government
introduced the minimum capital requirement and as a result 1,020 contractors have been given licenses
since 1993. There were very few local contractors working in the industry at the start of the RSDP in
1997. Those contractors who were available were constrained by lack of experience in managing
construction projects, lack of skilled manpower, shortage of capital and equipment. Local contractors
were not in a position to compete with international contractors and in the early years of RSDP I the
share of local contractors in the road construction market (in terms contract price of projects) was only
5%. Through Government and RSDP capacity building programs competitiveness of local contractors has
progressively increased and market share for local contractors has now risen to 62% in the year 2010.
Increased market share by local contractors demonstrates that competitiveness and capacity within the
domestic road construction market has improved. The number of road projects awarded to local
contractors has increased significantly from year 1999 to 2010. The total value of construction contracts
awarded to local contractors throughout the RSDP is ETB 21 billion. Local consultants have increasingly
been involved in road sector development by supervising implementation of road projects and
conducting road design and other studies. The market share for local consultants has increased from
19% in 1999 to 74% in the year 2010. The number of consultancy services awarded to local consultants
has increased significantly from year 1999 to 2010. The total contract value awarded to local consultants
from 1999 to 2010 was ETB 1.6 billion. Moreover, local consultants participate in projects that have
been conducted by foreign consultants by providing local expertise. The impact of the program in
building the capacity of the domestic construction industry is encouraging. Specifically, participation of
the local contracting industry has increased, in terms of both the value and number of projects, over the
last thirteen years of the RSDP. Local contractors are mostly involved on projects financed by the GOE,
with contract values averaging ETB 1,640 million for the period from 1997 to June 2010. Local
involvement on larger construction contracts is still marginal, although some local contractors are now
taking relatively bigger contracts, with values amounting to as much as ETB 825 million. ERA is carrying
out a small number of civil works by its own force account, particularly in areas where the private
industry is not willing to work. Of the 691 contracts (both construction & consultancy) awarded over the
last thirteen years of the RSDP, some 443 contracts were awarded to local companies. The majority of
these contracts, 63%, were for consultancy services, with 37% for road construction works. The value of
civil works contracts awarded to local firms was ETB 21.3 billion to June 2010, whilst that for consultancy
services amounted to some ETB 1.6 billion. Organizational Structure and Arrangement The Ethiopian
Roads Authority has wrapped up the BPR study and is currently in the test implementation stage.
Accordingly, ERA has reorganized its operations and regulatory departments as independent
institutions. The former Operations Department has been reorganized as a public contractor as
Ethiopian Roads Construction Corporation (ERCCO) by council of Ministries Regulation No.248/2011
with the purposes of 1. Engaging in domestic and overseas and the Regulatory Department has been
reorganized as ERA by council of Ministries Regulation No.247/2011 with responsibility to plan and
manage the road network and supervise road works and is accountable to Ministry of Transport. The
highest authority of ERA is laid on the Board of Directors. ERA is directed by the Chief Executive Office
called the Director General. Under the Director General there are three Deputy Director Generals
(DDGs). These are Deputy Director General of Planning & ICT, Engineering Operations Deputy Director
General, and Human Resource & Finance Deputy Director General.

1. ERA’s Director General This is top level executive and advanced Managerial work in the Management
of core and support processes and other organizational components of the Ethiopian Roads Authority.
The Director General of Ethiopian Roads Authority shall be directly accountable to ERA Board. Internal
Audit, Communication, Legal & Systems Development Directorates are directly accountable to the
Director General of ERA.

1.1. Internal Audit Directorate The scope of ERA Internal Audit activity includes independent assessment
of ERA's policies, procedures and systems which are in place to ensure reliability and integrity of
information, compliance with policies, plans, procedures, laws and regulations; safeguarding of assets;
economical and efficient use of resources; and accomplishment of established objectives and goals for
operations and programs. The Directorate has two teams.

1.1.1 Financial Audit Team Financial audit team involves in the review and examination of financial
records and statements of ERA to ensure whether the financial information are relevant, accurate,
complete and fairly presented; and also it involves in deterring and investigating fraud, safeguarding of
assets and compliance with laws and regulations.

1.1.2 Performance Audit Team Performance audit team will be engaged in an independent assessment
of ERA's programs, activities, functions, management systems and procedures to ensure whether the
entity, in pursuit of predetermined goals, has achieved economy, efficiency and effectiveness in the
utilization of its resources.

1.1.2. Communication Directorate The directorate is responsible for planning, organizing, motivating,
coaching, assisting and evaluating and directing a comprehensive communication program to promote
understanding of the purposes and functions of ERA by the general public as well as ERA employees for
the achievement of its objectives. The head is also responsible for establishing; maintaining and
promoting favorable relationship with various public works. The Directorate has one team.

1.1.2.1 Communication Team The team identifies priority and focus areas for Printing & electronics
media. Organizes, compiles information transmitted through different media. Identifies source of
information, request for information used for replies, gather information for different media. Edits
printing and electronics materials, Prepares camera ready copies for printing, take pictures and record
films and edits them.

1.1.3 Legal Affairs Directorate The Legal Affairs Director coordinates the teams at the head office level.
Further, it gives professional assistance to the regional legal affairs team. It also gives legal counseling to
the Director General, to the management and other core and supporting offices. In addition,

 Plans & execute short term legal trainings to ERA staff

 Prepares periodic plan, budget, reports

 Handles extra contractual and labour cases arising at head office level

 Represent the authority before mediation, and arbitration tribunal

 Extra contractual

 Insurance

 Labour and personnel administration

 Follow up of criminal cases before police, prosecutor office and Anti-corruption commission

 Follow up of cases arising from audit report The Directorate has one team.

1.1.3.1 Contract and Claims Team Handles legal cases in relation to construction and other contracts.
This includes  Provision of legal advice on various issues including claims

 Defending the interest of the authority by litigating only meritorious and cost effective cases

 Rendering legal assistance in negotiations to resolve disputes at a minimum cost and with win-win
outcome
 Handling dispute through Alternative Dispute Resolution (ADR), Dispute Review Expert and Arbitration.
It works out qualitative pleadings by being punctual in fulfilling professional commitments and
exhausting all means of disposing cases in favor of the authority.

1.1.4 Systems Development Directorate The director plan, organize coach, assist, motivate, coordinate
and evaluate performance of the teams and ensure organizational systems have good
interfaces/integration and are effective and consult top management on strategic issues and resource
(man power, finance, material, information) utilization. The Directorate has one team.

1.1.4.1 Systems Development Team Ensure the implementation of different systems (processes,
manuals …etc), plan, organize, coach, assist, motivate, coordinate and evaluate performance of the
team members and follow up implementation of different systems. Study/update organization
structure, job descriptions, salary scale, work standard, measurement and work load analyses and
coordinate & follow up implementation of government policies & regulations with respect to change
management and follow up BPR implementation and study work measurement and work load analyses.

2.1. Planning & ICT Deputy Director General The office of the Deputy Director General is responsible for
co-coordinating and managing tasks of the directorates are properly executed as planned to the
required quality and in reference to achieving the organizational plan. Moreover, the office is also
responsible for providing the necessary material and manpower resources for the directorates and the
teams under the office. It is also the responsibility of the office to play advisory role to the Director
General

2.1.1. Planning & Program Management Directorate The directorate is responsible for the overall
project identification, program development, monitoring & evaluation and impact assessment of the
sector program, budget management, regional roads support and management of road related
environmental and social impacts of the organization at a central level. As indicated in the organizational
structure and described herein under, the directorate has five different teams, which conduct the above
major tasks.

2.1.1.1. Road Network Planning Team The Road Network Planning team is responsible for the overall
organizational planning as well as development of the short term sector program as a final output of the
team. While doing so, the team gathers relevant data and information from various sources including
compiled asset management planning information from the Engineering Operation’s Road Asset
Management Team and processes further in order to develop the sector program. Hence, the team
conducts the data acquisition, customer communication, acquires asset management planning data, and
identifies projects to be implemented within short and long time frames and finally prepares the
combined asset and expansion sector program.

2.1.1.2. Budget Mgt. Team The team is responsible for the preparation of physical and financial action
plan and finally produces the project development initiation sheet. Mainly the team is responsible for
administering and managing the approved budget, which is specified under the annual physical and
financial action plan. While managing the approved budget, the team also processes additional budget
request as required. Moreover, the Budget Management Team shall also be responsible for the
preparation of the medium term plan (PIP).

2.1.1.3. Monitoring & Evaluation Team Having inputs of possible impact indicators that can show the
performance of the sector program developed by the road network planning team; the team shall
monitor and evaluate the socio-economic development, governance and environmental impacts of the
program against the preset targets, objectives, goals and the expected overall contribution to socio-
economic development during and after the implementation of the program. The output of the
monitoring and evaluation team shall be used for making corrections on the ongoing remaining
component of the program and for future program development considerations. Briefly the main tasks
of the team consist of: collection of data with respect to outcome and impact, undertaking analysis and
Development of corrective strategies for the ongoing and future programs. Moreover, the team shall
develop monitoring and evaluation and assessment reports that could be used for decision makers,
financers and other internal and external stakeholders.

2.1.1.4 Regional Roads Support Team The team is responsible for coordinating and providing assistance
to different regional roads and woreda road desks in relation to integrated planning and technical
aspects and related services.

2.1.1.5 Environment & Social Management Team

 The team is responsible for ensuring the incorporation of Environmental issues in the road
infrastructure planning & implementation procedures.

 Organizes/coordinates/supervises EIA/RAP studies, road projects proposed for

construction/upgrading/rehabilitation.

 Carry out field environment monitoring activities to on-going road projects to check the
implementation of impact mitigation measures.

 Undertake in-house Environmental Impact Assessment and Resettlement Action Plan for road projects
in emergency cases.

 Prepare Road Sector Environmental Guidelines based on the existing National and International
practices for road developers.

 The team ensures the incorporation of HIV/AIDS prevention and control activities in road sector.

2.1.2. Information Communication Technology Directorate The directorate shall be responsible for the
management of ICT resources which broadly include activities ranging from operational management,
resource planning, operational monitoring and evaluation in line with the provision of business
objectives so that the directorate furnishes the required support for the Road Asset Delivery and
Management core-process. The team has three teams to conduct the above